MBB - Credit cost maintained at high level
- In Q1/2024, credit growth reached 0.39% YTD, with customer loans up 0.7% YTD and corporate bond decreasing 4.4% YTD. Cost of funding (annualized) and asset yield (annualized) continued to decelerate in Q1, decreasing by 54 bps and 72 bps respectively, leading to NIM (annualized) dropping 26 bps compared to Q4/2023 to 4.04%. Consequently, net interest income declined by 11% YoY.
- Non-interest income sources grew 73.5%, offsetting the decline in interest income, resulting in total operating income reaching VND 12 trillion (USD 489.80 mn) in Q1/2024, almost flat compared to the same period. On the cost side, provision expenses increased by 46.4% yoy, while operating expenses decreased slightly by 1.5% yoy, resulting in a PBT of VND 5.8 trillion (USD 236.73 mn) (-11% yoy), achieving 20% of the 2024 profit plan.
- Despite robust growth in non-interest income during the first quarter, the performance of NIM and credit cost is trending less favorably than our expectations. Therefore, we are in the process of reviewing our forecasts and valuation for 2024. Our latest forecast for PBT in 2024 stands at VND 30.3 trillion (USD 1.24 billion) (+15% yoy); with the corresponding target price (TP) at VND 28,200 per share.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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